Fund Manager Cohen: Gold Price Can Rise for Decades

The bull market for gold may well continue for decades amid persistent inflation, says Robert Cohen, a gold fund manager at Goodman & Co.

The monetary and fiscal stimulus implemented first in response to the U.S. financial crisis and more recently in Europe have helped push gold to a record high of $1,249, he says.

Gold recently traded at about $1,213.

“Every time we have a crisis in the world, whether it’s the big financial crisis here in late 2008 or the Greek financial crisis, the resolution often involves expansion of the money supply,” Cohen told CNBC.

All that money printing, of course, boosts gold prices.

“Every time there’s a financial crisis, the remedy is good for gold,” Cohen said. And, “I don’t think Greece is the last one we’ll see.”

Sustained budget deficits also will buoy gold, he says. “We’ll have deficits as far as the eye can see in most developed nations. Again, governments tend to print their way out of these problems.”

That’s why gold is headed higher for decades, Cohen says.

“While we are 10 years into the bull market, if it were to end today, it would be the shortest bull market for gold.”

Economist David Rosenberg of Gluskin Sheff says gold may hit $3,000.

Contagion risks from the Greek financial crisis loom, he wrote to clients.

“And there are simply not enough trees on the planet that can provide enough paper currency to backstop countries like Portugal and Spain.”

The bull market for gold may well continue for decades amid persistent inflation, says Robert Cohen, a gold fund manager at Goodman Co.
The monetary and fiscal stimulus implemented first in response to the U.S. financial crisis and more recently in Europe have helped...